BRISTOL HOTEL COMPANY REPORTS SECOND CONSECUTIVE QUARTER OF RECORD EARNINGS.DALLAS--(BUSINESS WIRE)--Nov. 1, 1996--Bristol Hotel Company today reported net income of $6,835,000, or $ .40 per share, for its third quarter ended September September: see month. 30, 1996, almost six times the pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net income of $1,161,000 or $ .07 per share for the same period in 1995. Earnings before interest, income taxes, depreciation, and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) for the quarter was $21,056,000 versus pro forma EBITDA of $9,565,000 in 1995. Net income year to date totaled $15,073,000 ($.89), a 99% increase over the pro forma amount for the same period in 1995. Total revenues were $58,571,000 for the quarter and $159,485,000 year to date versus pro forma amounts of $46,267,000 and $135,642,000 respectively in 1995. Rooms revenue per available room ("revpar") for the owned hotels increased 23.4% versus the prior year, driven by the company's redevelopment program. Revpar for the 28 acquired hotels grew 37.3% as the properties that were redeveloped over the last nine months continued to improve their market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" and achieve higher room rates. Revpar for the "original Harvey Harvey, city (1990 pop. 29,771), Cook co., NE Ill., a suburb S of Chicago; inc. 1895. Its manufactures include steel castings, metal products, chemicals, machinery, and electronic equipment. Harvey has an oil research center. The city was founded by Turlington W. " portfolio grew at a slower pace (2.0%) as the two largest hotels representing 30% of the rooms in this segment were impacted by renovations which took their meeting and banquet A banquet is a large public meal or feast, complete with main courses and desserts. It usually serves a purpose, such as a charitable gathering, a ceremony, or a celebration. Sometimes a banquet consists of only desserts, but it is advisable to include main courses as well. space out of service for approximately four weeks during the quarter. The company's redevelopment program, which impacted 5,383 rooms, was nearly 90% complete at the end of the quarter with only two hotels remaining to be finished in late 1996 and early 1997. Year to year increases in EBITDA from the Phase I and Phase II properties were 708% and 144% respectively reflecting the successful ramp-ups of the completed projects. As these renovated hotels are successfully established, the company is shifting its focus to acquiring additional hotels. "We're we're Contraction of we are. we're we are very pleased with our results in the third quarter, although the positive impact of the Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. Olympics Olympics Sports medicine An international competition among (traditionally) nonprofessional athletes trained in a particular summer or winter sport, which is held every 4 yrs in a selected city. See Paralympics, Special Olympics, World Medical Games. was less than expected," noted J. Peter Kline, President and Chief Executive Officer. "The Olympics produced a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. boost to occupancies and average room rates but food and beverage F&B is a common abbreviation in the United States and Commonwealth countries, including Hong Kong. F&B is typically the widely accepted abbreviation for "Food and Beverage," which is the sector/industry that specializes in the conceptualization, the making of, and delivery of foods. business during the Olympics was disappointing. Furthermore, normal travel patterns in the Atlanta region immediately preceding and following the Olympics were negatively affected. Despite the weaker-than-expected demand, our Atlanta hotels continue to improve market share in line with our expectations. In addition, our renovated hotels are improving rapidly. These hotels are producing results consistent with their positioning as established hotels with product quality standards higher than most new hotels." Also in the third quarter, there was a final resolution of the Huie family litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. which had a positive impact on net income of approximately $570,000. Bristol Bristol, cities, United States Bristol. 1 Industrial city (1990 pop. 60,640), Hartford co., central Conn., on the Pequabuck River; settled 1727, inc. 1785. Its clock-making industry dates from 1790. Hotel Company was formed in February February: see month. 1995 through the combination of the Harvey Hotel Company with the assets of United Inns, Inc. Pro forma results for the third quarter of 1995 reflect the combination and subsequent initial public offering, debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay and related transactions as if they occurred at the beginning of 1995. The company is a leading owner/operator of hotels in the southern United States The Southern United States—commonly referred to as the American South, Dixie, or simply the South—constitutes a large distinctive region in the southeastern and south-central United States. , with 39 hotels (37 of which are owned by the company) containing approximately 10,200 rooms. The company's shares are listed on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (trading symbol Trading symbol See: Ticker symbol BH) following its initial public offering in December December: see month. , 1995. -0-
Bristol Hotel Company
Consolidated Statements of Income
(In thousands, except per share amounts)
Actual Pro Forma Actual Pro Forma
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1996 1995 1996 1995
Revenue:
Rooms $43,578 $32,931 $114,846 $97,158
Food & Beverage 9,717 9,234 31,115 28,140
Other Operating Departments 5,276 4,102 13,524 10,344
Total Revenue 58,571 46,267 159,485 135,642
Operating Costs and Expenses:
Departmental Expenses:
Rooms 10,518 9,658 28,325 27,681
Food & Beverage 7,437 7,587 22,618 21,401
Other Operating Departments 1,174 1,285 3,462 3,340
Undistributed Operating Expenses:
Administrative and General 4,576 4,776 13,377 12,883
Marketing 3,963 3,686 11,480 9,446
Property Operating Costs 4,602 4,884 13,017 13,612
Property Taxes, Rent and Ins 2,710 2,456 8,092 6,793
Depreciation and Amortizatio 4,983 3,586 13,392 10,364
Corporate Expense 2,535 2,366 8,049 6,252
Operating Income 16,073 5,983 37,673 23,870
Other Expenses
Interest Expense, Net 5,258 4,165 13,824 11,971
Other - 4 - 74
Income Before Income Taxes 10,815 1,814 23,849 11,825
Provision for Income Taxes 3,980 653 8,776 4,257
Net Income $6,835 $1,161 $15,073 $7,568
Earnings per Share $0.40 $0.07 $0.89 $0.45
Weighted Average Shares
Outstanding 17,019 16,872 17,016 16,872
EBITDA/a $21,056 $9,565 $51,065 $34,160
(a) Earnings before interest, income taxes, depreciation
and amortization.
BRISTOL HOTEL COMPANY
STATISTICAL SUMMARY
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
Occupancy Average
Percentage Room Rate
Post % Point
Renovation Change % Change
Room vs. Prior vs. Prior
Count/b 1996/b Year/a 1996/b Year/a
Original Harveys 2,626 72.0% -1.1% $ 75.02 3.4%
Full Service Acquisitions
Phase I Redevelopment
(March 1995
- Sept. 1995) 1,687 68.4% 19.9% $ 78.77 22.8%
Phase II Redevelopment
(Sept. 1995
- May 1996) 1,408 75.9% 3.4% $ 71.77 41.2%
Phase III Redevelopment
(March 1996
- Dec. 1996) 1,383 70.5% -8.7% $ 71.76 23.7%
Limited-Service Acquisitions
Stabilized Hotels 921 76.2% -0.1% $ 73.78 30.0%
Conversion Hotels 1,242 51.2% 5.9% $ 64.89 30.8%
Total Acquired Hotels 6,641 68.7% 3.7% $ 73.03 29.9%
Total Owned Hotels/b 9,267 69.6% 2.2% $ 73.62 19.5%
Hotel Hotel
Rooms RevPAR Revenue/b EBITDA/b
% Change % Change % Change
vs. Prior vs. Prior vs. Prior
1996/b Year/a Year/a Year/a
Original Harveys $ 54.03 2.0% -2.4% 9.1%
Full Service Acquisitions
Phase I Redevelopment:
(March 1995 - Sept. 1995) $ 53.91 73.2% 94.6% 707.7%
Phase II Redevelopment
(Sept. 1995 - May 1996) $ 54.44 47.6% 44.2% 143.8%
Phase III Redevelopment
(March 1996 - Dec. 1996) $ 50.57 10.1% 5.1% 25.1%
Limited-Service Acquisitions
Stabilized Hotels $ 56.19 29.8% 32.0% 74.8%
Conversion Hotels $ 33.25 48.1% 82.8% 607.7%
Total Acquired Hotels $ 50.15 37.3% 46.1% 143.8%
Total Owned Hotels/b $ 51.27 23.4% 25.2% 76.8%
(a) Prior year represents pro forma results for the quarter ended
September 30, 1995.
(b) Excludes the 159 room Holiday Inn-Plano acquired during the
quarter ended June 30, 1996.
The 377 room Harvey Atlanta Airport Hotel is reflected as a
Phase III redevelopment property. For the previous quarters it
had been reported as a Phase II property.
CONTACT: Bristol Hotel Co. Jeffrey P. Mayer, CFO See Chief Financial Officer. , 972/687-0226 |
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